A Path Appears: Transforming Lives, Creating Opportunity

Here the authors examine what motivates people to donate to a cause. They describe the success of the program Operation Smile, which provides access to doctors for poor children around the world who have cleft lips. The procedure is simple and inexpensive in developed countries, but in many developing nations the condition goes untreated, affecting children’s ability to eat and speak as well as their self-esteem.

One part of Operation Smile’s success was president Brian Mullaney, a former advertising executive. He brought an ad man’s sense of marketing to the job, relying on direct mailings and a documentary film that acted as a public ad campaign. He poured over data to be able to identify and contact likely donors; he relied on evidence-based models of success in the private sector. Over time, differences in philosophy led to Mullaney and the organization parting ways, and he now heads his own organization called WonderWork, which acts as an umbrella marketing group for a number of charities. This allows for shared resources and lower overhead, while at the same time creating a unified database that tracks donors that all the organizations can draw upon for appeals. It is Mullaney’s unique approach to fundraising—and its great success—that the authors note here.

Researchers have examined what makes people donate and which kinds of appeals they respond to best. The most effective approach is an emotional appeal that focuses on an individual (rather than the “big picture” full of statistics)—one that tells a story. It also helps to highlight the organization’s tangible, positive efforts in the field, since tales of overwhelming need can give people a sense of futility. This is what worked for Mullaney.

This chapter looks at organizations that blur the lines between nonprofits and for-profits. In the past, the former was strictly about a social cause of some kind, while the latter meant a business designed to make money. Some organizations today are looking to turn a profit to better support a social cause and to become self-sustaining. One example is Greyston Bakery, founded in Yonkers, New York, by Bernard Glassman, who wanted to help homeless people. Glassman hired any homeless person looking for a job—no background checks or references needed. If they did the work well, they stayed; if not, they were let go.

Of course, a business needs to be profitable to stay viable no matter whether their intentions serve social welfare or not. Glassman happened to meet Ben Cohen and Jerry Greenfield of Ben & Jerry’s Ice Cream at a conference, and they were interested in his efforts to help the homeless. They invited him to try to become a supplier of baked goods for their ice cream. It was a business proposition, not a charity deal, which meant they had to like what Greyston offered. Glassman worked hard, experimenting with ingredients and methods, until he got what Ben & Jerry’s was looking for. The profits from the company helped Glassman set up a foundation to support his homeless employees with things like childcare and affordable housing. Today, Greyston has $13 million in annual sales and 150 employees, as well as 300 housing units (206).

The authors use this chapter to examine the idea of large corporations engaging in socially responsible business. It’s been long debated whether corporations should even attempt this; conservative economist Milton Freidman was staunchly opposed to it, saying it virtually defrauded shareholders. Some accuse corporations of doing it for good public relations, and the authors acknowledge this is sometimes the case. However, it can be done successfully and with good intentions.

This chapter highlights a partnership between the yogurt company Danone and Muhammad Yunus, the Nobel Prize laureate known for his work with microfinancing in Bangladesh. Danone wanted to help malnourished Bangladeshi children. They agreed to work together, setting up a joint venture in Bangladesh to run the operation and provide jobs. Among the many challenges were that local cows did not produce enough milk, refrigeration in most areas was scarce, the micronutrients added to the yogurt as supplements were bitter, and Bangladeshis did not have a taste for Western-style yogurt. One by one, Danone and Yunus overcame each problem, and though sales were variable at first they eventually evened out. Much of the venture’s success could be attributed to the local women hired to sell the yogurt in their communities, who were able to earn a decent living as well.

Another example is IBM’s program Corporate Service Corps. Just as law firms have often encouraged pro bono work by their attorneys, companies such as IBM give employees time and resources to volunteer. Their program sends professionals around the world as free consultants, thus far reaching 30 different countries. The authors write that “[f]or Yunus, all this is just a starting point. Social businesses, he argues, are much more effective ways to address social issues than aid, and more so than purely for-profit enterprises. Aid creates dependency, he says, while purely for-profit entities don’t address important social issues” (225).